What are the minimum insurance coverage requirements, in dollar amounts, for Noodles & Company franchisees?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
9.08 Insurance. You must maintain in force such insurance policies as we require from time to time as set forth in the Operations Manual and you shall provide insurance certificates to us within 10 days of executing the Franchise Agreement and annually at least 10 days to expiration of each policy. Such policies shall (a) name us and our Affiliates as additional insureds and loss payees; (b) provide for 30 days' prior written notice to us of any material modification, cancellation, non-renewal or expiration of such policy; and (c) include such other provisions as we may require from time to time.
Prior to opening each Noodles & Company Restaurant, and annually thereafter, you must furnish us with such evidence of insurance coverage and payment of premiums as we require. If you fail or refuse to maintain any required insurance coverage, or to furnish satisfactory evidence thereof, we, at our option and in addition to our other rights and remedies hereunder, may obtain such insurance coverage on your behalf. If we do so, you must fully cooperate with us in our effort to obtain such insurance policies and pay us any costs and premiums we incur.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, franchisees must maintain insurance policies as specified in the Operations Manual. These policies must name Noodles & Company and its affiliates as additional insureds and loss payees. Franchisees are required to provide insurance certificates to Noodles & Company within 10 days of executing the Franchise Agreement and annually, at least 10 days before each policy's expiration.
The insurance policies must provide for 30 days' prior written notice to Noodles & Company in case of any material modification, cancellation, non-renewal, or expiration. Additionally, the policies must include any other provisions that Noodles & Company may require from time to time.
If a franchisee fails to maintain the required insurance coverage, Noodles & Company has the option to obtain the necessary insurance on the franchisee's behalf, and the franchisee is responsible for fully cooperating and paying all associated costs and premiums. The FDD does not specify the exact dollar amounts or coverage levels required, but it emphasizes the franchisee's obligation to adhere to the insurance requirements detailed in the Operations Manual and to provide proof of coverage as requested.